After twenty years of hard work establishing its foundation, Linping Development embarks on a new journey towards green and circular development.
On January 22nd, Anhui Linping Circular Development Co., Ltd. (referred to as "Linping Development") disclosed its intention to issue shares, initiating the issuance process with subscriptions starting from January 30th, marking a decisive step towards listing on the Shanghai main board.
As a benchmark enterprise in China's resource comprehensive utilization sector, Linping Development has deeply cultivated the entire industry chain of waste paper recycling, combined heat and power production, and green papermaking. With "green manufacturing + circular economy" as its dual-wheel drive development strategy, it has steadfastly navigated through the wave of restructuring and integration within the papermaking industry. Leveraging robust operational quality, leading technological strength, and clear strategic layout, the company has earned dual recognition from both capital markets and industry markets, ushering in a bidirectional approach of industrial upgrading and capital empowerment.
The business performance is resilient with solid underlying operations.
Against the backdrop of fluctuations in raw material prices and adjustments in market demand affecting the papermaking industry, Linping Development has demonstrated strong anti-cyclical resilience and sustainability in its operating performance over the past three years by relying on advantages of whole-industry-chain synergy and fine management capabilities. According to the company's share issuance intention statement, revenues were 2.879 billion yuan, 2.8 billion yuan, and 2.485 billion yuan respectively from 2022 to 2024. Despite significant downward pressures within the industry, revenue remained steadily growing; net profits attributable to shareholders reached 154 million yuan, 212 million yuan, and 153 million yuan, reinforcing a stable profit base.
In the first three quarters of 2025, Linping Development accurately seized opportunities for industry recovery, actively optimizing production scheduling and market layout, achieving a revenue of 1.928 billion yuan, a year-on-year increase of 2.79%, with a still substantial scale of net profit and a noticeable recovery trend.
Based on precise judgments of industry development trends and confidence in its own capacity layout, Linping Development anticipates annual revenues of 2.64-2.78 billion yuan in 2025, with net profits attributable to shareholders reaching 180-200 million yuan, representing steady growth compared to 2024, potentially returning to a fast lane of profit growth.
The core product matrix contributes stability. In 2024, the income from two major products, corrugated fiberboard and containerboard, accounted for more than 90% of the company's revenue, forming a "focus on core, complementary synergy" product pattern, providing core support for stable performance. In the first half of 2025, containerboard accounted for 71.49% of revenue, with unit prices slightly declining but stable gross margins, and a sales rate exceeding 95%. The successful approval of this fundraising will strengthen competitiveness.
Market position is leading with continuously prominent scale advantages.
With the tightening of environmental protection policies in the papermaking industry and the acceleration of capacity replacement, industry concentration continues to rise. Leading enterprises are constantly capturing market share through economies of scale and regional advantages, positioning Linping Development at a leading edge. In 2024, the company's total output of paper reached 1.0197 million tons, successfully ranking among the top 30 papermaking enterprises nationwide. Its core product, containerboard, had an output of 715,100 tons, occupying a market share of 2.36%, ranking ninth nationwide, with core product competitiveness firmly positioned at the forefront of the industry.
Since 2025, Linping Development's production and sales volumes have continued to climb steadily. In the first half of the year, paper output reached 530,300 tons, with sales volume at 505,100 tons, maintaining a smooth connection between production and sales, and sustaining a steady trend during the industry recovery cycle. Supported by a 2.79% year-on-year growth in revenue in the first three quarters, capacity utilization continued to optimize, further consolidating its leading position in the industry.
In terms of regional market layout, Linping Development has deeply rooted itself in northern Anhui and radiates across East China, building a solid regional competitive barrier. In 2024, the company's paper output accounted for as high as 35.65% of the total paper and cardboard production in Anhui Province. With superior product quality, efficient delivery capabilities, and a well-established distribution network, it has formed a leading advantage in the Anhui market. In the first three quarters of 2025, the company simultaneously seized opportunities for regional market growth, maintaining a high proportion of output.
With the implementation of this listing fundraising project, the company's total paper production capacity will leap from 1.15 million tons/year to 2.35 million tons/year, continuously releasing economies of scale, expected to further expand market share and consolidate its national industry status during the industry consolidation process.
Prospects are broad and promising, with shared value creation for shareholders.
As an important basic raw material industry for the national economy, the demand for the papermaking industry remains rigid and stable. Alongside the continuous development of downstream industries such as e-commerce logistics and packaging printing, market demand is expected to maintain steady growth, presenting a broad and promising future.
Moreover, under the guidance of the "dual carbon" goals, environmental protection policies continue to tighten, accelerating the exit of small and medium-sized papermaking enterprises due to non-compliance with environmental standards and smaller production scales. Industry resources are concentrating towards large-scale, green, and intelligent enterprises, bringing extensive market expansion space and industry consolidation opportunities for Linping Development. Institutional data shows that from 2025 to 2028, with the growth of downstream demand and the advancement of "paper replacing plastic", the industry will experience steady growth.
The funds raised from this listing will be primarily invested into the "Annual Production of 900,000 Tons Green Environmental Protection Intelligent Manufacturing New Materials Project (Phase II)" and the "Annual Production of 600,000 Tons Bio-based Fiber Green Intelligent Manufacturing New Materials Project". Upon completion of these projects, the company's production scale will be further highlighted, with profitability and core competitiveness expected to achieve a leap.
